27/5/2005
Europe Raises Development Aid Targets

By Anthony Pouliquen

At a meeting of development ministers in Brussels, this week the EU's 15 wealthiest countries agreed a target of spending 0.51% of GDP on world development aid by 2010, making 2005 a key year for fighting world poverty. The declaration also stated that aid should reach the UN target of a minimum 0.7% of GDP by 2015.

By signing this deal, the member states are thus stepping up public development aid to the tune of 20 billion euros over the next five years, reinforcing Europe's role as a leading development donor and bringing EU aid from 46 billion euros in 2006 to 66 billion euros in 2010. Half of the increase in aid will go to Africa.

Such a landmark in international efforts comes after five years of a march towards the Millennium Development Goals (MDGs) set at the UN Millennium Summit in 2000, the largest gathering of world leaders ever. The new aid goals will contribute directly to the key MDG of halving the numbers of those living in poverty by 2015.

Welcoming the decision the UN Secretary-General Kofi Annan said that the EU decision was well in line with the recommendations in his report 'In Larger Freedom,' (dealing with this September's review of the MDGs) and that it sent a valuable message about the importance the EU attaches to the global partnership for development.

The UN target was actually set 35 years ago, and Britain first adopted the 0.7% target under in the 1970s. So far only four EU countries - Luxembourg, the Netherlands, Sweden and Denmark - have met it. Five others - the UK, France, Belgium, Finland and Spain - have set firm dates to achieve it. For the countries who have already reached such a percentage, the decision has been to sustain their efforts towards the 2015 objectives. Sweden and the Netherlands spent 0.7% of GDP on aid in 1975, Denmark in 1978 and Luxembourg in 2000. Belgium and Finland are committed to reaching the target by 2010, France and Spain by 2012, and the UK by 2013.

However, in a note of warning, Germany, Italy and Portugal also stressed that the extra expenditure involved could have lead to financial problems in staying within the EU's strict budget deficit limits.

The EU’s 15 older member states will make up the bulk of this effort, since they are also the wealthiest. The other 10 countries agreed to try to reach 0.17 % of GDP in 2010.

Welcoming the accord, Luxembourg development minister Jean-Louis Schiltz, whose country holds the EU’s presidency at the moment, said "I consider this to be an essential development, an extremely important advance in international solidarity….Europe has shown today that international solidarity is not an empty phrase.” He also stressed that financial assistance could not be the only way to development and the eradication of poverty. It also implies active cooperation with the developing countries

Nearly half of the EU’s contribution will go to the African continent. In an ambitious strategy aimed at coping with the global challenges of the next decades, the EU proposes to back up the growth of Sub-Saharan Africa, which remains at the rear of the race for development. However, the African continent has shown its motivation and will to take charge of its own sociological, economical, political growth. Many countries have already started their transition towards democracy. Many parts of the continent have come to peace agreements accelerating the improvement of their own finances, mainly through renewed trade bonds with neighbouring countries. The emerging African Union and New Partnership for Africa’s Development (the NEPAD, a strategic framework for Africa’s renewal tackling issues such as the escalating poverty levels, underdevelopment and the continued marginalisation of Africa) have triggered a process of liberation and democratisation of Sub-Saharan political life, and the EU’s role will be to act as a motor for such initiatives in order to improve the continent’s governance and promote peace and security.

The UK’s international development secretary, Hilary Benn, claimed that “"The EU provides over half of all global assistance. Today's agreement shows that Europe has put itself at the forefront of efforts to reduce global poverty. I very much hope that other donors will follow Europe's lead as soon as possible."